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How Do We Manage The P11D Tax Admin?

February 11, 2019
HR Wisdom

How Do We Manage The P11D Tax Admin?

GoSweat’s service can be taxed in a variety of ways. All fitness activities are taxed, unfortunately, unless you provide the facilities and provide them exclusively for employees.

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Salary Sacrifice

A salary sacrifice is where employees give up the right to receive part of
their cash pay due under their contract of employment. In the case of GoSweat for Work, employees will receive a lower amount of net pay each month. This method works best if you have a lower budget and employees have the option to opt in at regular intervals. There is no NIC when using GoSweat for Work via Salary sacrifice.

There are two downsides to this option however. Firstly, if a company were to pay upfront for 12 months, this can have an impact on cashflow. Secondly, if an employee leaves during these 12 months, they will have to pay the remaining balance as part of their final paycheck.

Benefit in Kind (BIK)

Offering GoSweat for Work is the best way to engage the widest audience of employees. As a company, you are clearly investing in your employees' well-being and they can see this. Employees will have access to GoSweat for Work and will only be charged income tax on the value you have paid. Given the great value of GoSweat for Work, the net gain for employees is huge.

For the admin side, the best way to solve this is to payroll the benefit, which means it comes out each month as part of PAYE and keeps admin to a minimum. This way you only need to fill in a P11D (b) form which is simple to complete, but make sure you do it before April 6 for tax purposes. If you provide GoSweat for Work as a benefit and do not payroll the benefit, you will have to complete a P11D form alongside the P11D (b) form.

If you have any other questions regarding tax admin, please reach out to your account manager.

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*Disclaimer - We cannot offer formal tax or accounting advice and this page should be used as a guide only. Professional assistance should be used when required. Tax legislation changes regularly so please check with HMRC for changes.*

Alex is a Cheerleader, not literally pompom wheelding (unfortunately), but he does install enthusiasm and drive performance, and has been known to do the occasional jig.

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